Rural Development: Principles, Policies and Management comprehensively addresses the basic concepts, elements, paradigms, determinants, policy instruments, strategies, programs, and management of rural development. The book emphasizes, in particular, the pivotal role of human resources as both a means and an end of development. New pedagogical featuers have been added in the Third Edition, including 'Learning Outcomes' at the start of each chapter, and 'Main Points' summaries and 'Questions for Discussion' at the end of chapters.

Financing Rural Development

Financing rural development

Learning Outcomes

After having gone through this chapter, students should be able to

  • list the purposes for which capital is required and the major sources of funds for rural development;
  • list the various domestic institutional sources of financing rural development projects and critically examine their role;
  • illustrate the role of non-institutional agencies in financing rural development projects;
  • describe how deficit financing can help mobilise funds for rural development projects and
  • critically examine the role of foreign sources of funds for rural development, especially, loans, grants and foreign direct investment.


The capital requirements of agricultural and rural development are enormous. Capital is required not only for on-farm investment to imp rove the production apparatus and to provide various farm inputs and services, but also for a vast array ...

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